During Jan-Mar 2012, I contributed the full amount of $16,500 into the company 401K.
The job terminated unexpectedly in Apr 2012.
I rolled over the entire amount of $16,500 into an IRA in Oct 2012.
In early March 2013, I received a letter from the old job that due to failure of the Actual Deferral Percentage Test, I was deemed HCE (Highly Compensated Employee), meaning that my 401K contribution limit for 2012 was only $7,500.
In late March 2013, I received a 1099R for tax year 2012, from the old 401K holding institution which stated $9000 in box 1 (gross distribution), and $9000 in box 2 (taxable amount) and distribution code of 8 in box 7.
My understanding is that the 1099R for tax yr 2012 is technically incorrect since I never got that distribution in 2012.
However, my reasoning failed to satisfy my old 401K holding institution (Wells Fargo) as they said that $9000 was ineligible to be rolled over into IRA, and they're standing by their 1099R to be correct.
I have not yet taken the money out from my IRA, and it's 2 weeks from Oct-15-2013 to file my 2012 taxes.
My problem - if I don't take a distribution of $9000 from my IRA, then I get taxed twice, as I'll have to pay taxes on the $9000 amount again when I take it out after retirement.
If I take a distribution of $9000 now, how should I request it? As a withdrawal of excess contributions for tax year 2012?
If I do take a distribution as withdrawal of excess contributions for tax year 2012, will my IRA holding insititution issue me another 1099R? And will it be
for 2012 or 2013? And can I submit to them the old 1099R from old 401K holding institution, with exact same amount so the old IRA holding institution does not issue me
a new 1099R?
No one in the old 401K holding institution is willing to talk to the new IRS holding institution, even though they are both belonging to the same company.
Any advice is highly appreciated.
Thanks in advance!
The job terminated unexpectedly in Apr 2012.
I rolled over the entire amount of $16,500 into an IRA in Oct 2012.
In early March 2013, I received a letter from the old job that due to failure of the Actual Deferral Percentage Test, I was deemed HCE (Highly Compensated Employee), meaning that my 401K contribution limit for 2012 was only $7,500.
In late March 2013, I received a 1099R for tax year 2012, from the old 401K holding institution which stated $9000 in box 1 (gross distribution), and $9000 in box 2 (taxable amount) and distribution code of 8 in box 7.
My understanding is that the 1099R for tax yr 2012 is technically incorrect since I never got that distribution in 2012.
However, my reasoning failed to satisfy my old 401K holding institution (Wells Fargo) as they said that $9000 was ineligible to be rolled over into IRA, and they're standing by their 1099R to be correct.
I have not yet taken the money out from my IRA, and it's 2 weeks from Oct-15-2013 to file my 2012 taxes.
My problem - if I don't take a distribution of $9000 from my IRA, then I get taxed twice, as I'll have to pay taxes on the $9000 amount again when I take it out after retirement.
If I take a distribution of $9000 now, how should I request it? As a withdrawal of excess contributions for tax year 2012?
If I do take a distribution as withdrawal of excess contributions for tax year 2012, will my IRA holding insititution issue me another 1099R? And will it be
for 2012 or 2013? And can I submit to them the old 1099R from old 401K holding institution, with exact same amount so the old IRA holding institution does not issue me
a new 1099R?
No one in the old 401K holding institution is willing to talk to the new IRS holding institution, even though they are both belonging to the same company.
Any advice is highly appreciated.
Thanks in advance!